Homework Answers
20 (B)
Reason : when large groups of customers withdraw their money from banks simultaneously based on fears that the institution will become insolvent.
19. (D) The decision lag is the period between the time when the need for action is recognized and the time when action is taken.
18 (C) wage-adjustment process is asymmetrical because wage rise take place during the boom as there is rise in production cost , demand so in order to meet inflation wage increase fast but in the slump time it decrease slowly.
17 (A) M1 includes currency in circulation and checkable deposit in chartered bank. and other deposit.
16 (D) credit card are used to make transaction as they have temporary power to settle the transaction.
15 (D) is determined by potential output and the price level by aggregate demand.
reason in the long run AD and potential output after adjusting all factors reaches to full employment level of output where AD and AS determine the price and real gdp.
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Saved Question 20 (1 point) What is a bank run? O A) A situation where a...
Question 16 (1 point) Saved Credit cards are considered to be "money substitutes" instead of money...
Question 16 (1 point) Saved Credit cards are considered to be "money substitutes" instead of money because OA) they are not acceptable to pay for purchases. OB) they cannot serve as a temporary medium of exchange. O C) the only function of money they can perform is to serve as a store of value. O D money must eventually be used to pay for the transaction. E) credit card accounts are not chequable. Question 17 (1 point) Until recently, and...
Question 27 (1 point) Saved The main distinction between M2 and M2+ is that M2+ also...
Question 27 (1 point) Saved The main distinction between M2 and M2+ is that M2+ also includes O A) deposits at trust companies, caisse populaires and foreign-currency accounts O B) coins in circulation. OC) money market mutual funds held by the Bank of Canada. OD) paper currency. OE) deposits at financial institutions other than the chartered banks. Question 28 (1 point) Saved The functions of the Bank of Canada include O A) acting as the lender of last resort for...
Question 44 (1 point) Assume that, in the process of an open market operation, the Bank...
Question 44 (1 point) Assume that, in the process of an open market operation, the Bank of Canada buys $100 billion worth of government bonds of chartered banks. Assuming the desired reserve ratio is 20%, in this process, a) Bank of Canada's assets increase by $100b. b) Bank of Canada's assets decrease by $100b. c) chartered banks' deposits at the Bank of Canada decrease by $100b. d) chartered banks' deposits at the Bank of Canada increase by $100b. e) chartered...
Question 1 (1 point) The amount of reserves that a commercial bank is required to hold...
Question 1 (1 point)
The amount of reserves that a commercial bank is required to
hold is equal to:
Question 1 options:
the amount of its checkable deposits.
the sum of its checkable deposits and time deposits.
its checkable deposits multiplied by the reserve
requirement.
its checkable deposits divided by its total assets.
Save
Question 2 (1 point)
Answer the question on the basis of the following information
for the Moolah Bank.
Refer to the information and assume that Moolah...
Question 48 (1 point) Use the following graph to answer the next question. AS, AS. (H...
Question 48 (1 point) Use the following graph to answer the next question. AS, AS. (H Price Level E AD. 0 AD A B C Real Domestic Output Other things equal, a shift of the aggregate supply curve from ASo to AS1 might be caused by a(n) Other things equal, a shift of the aggregate supply curve from ASo to AS1 might be caused by an) OA) decrease in nominal wages B) increase in productivity C) decrease in aggregate demand...
answer all QUESTION 14 The discount rate is the interest rate that O the Fed charges...
answer all
QUESTION 14 The discount rate is the interest rate that O the Fed charges on loans made to the government. O member banks charge on loans made to the Fed. O the government charges on loans made to the Fed. the Fed charges on loans made to member banks. QUESTION 15 The slope of the aggregate demand curve indicates that, as the price level increases, O the aggregate demand curve shifts rightward. O the real GDP demanded decreases....
Question Completion Status: QUESTION 9 The slope of the aggregate demand curve indicates that, as the...
Question Completion Status: QUESTION 9 The slope of the aggregate demand curve indicates that, as the price level increases, O the aggregate demand curve shifts rightward. the real GDP demanded decreases. the real GDP demanded increases. the aggregate demand curve shifts leftward. QUESTION 10 Checking deposits are commodity money. liabilities for banks. not included in M1 or M2. primarily used as a store of value. QUESTION 11 Suppose the required reserve ratio is 25%. Assuming that banks hold no excess...
Benji charges the tooth fairy 10% interest every night that they are late in exchanging money...
Benji charges the tooth fairy 10% interest every night that they are late in exchanging money for his lost tooth. If the price of a lost tooth is initially $1, approximately how many nights would it take for the price of the tooth to rise to $128? 7 nights O 13 nights 14 nights 49 nights It cannot be determined from the information above. Question 4 3 pts A description of the fiscal multiplier effect is when: the government increases...
1. The economy is experiencing high unemployment and a low rate of economic growth and the...
1. The economy is experiencing high unemployment and a low rate of economic growth and the Bank of Canada decides to pursue an expansionary monetary policy. Which action by the Bank of Canada would be most consistent with this policy? 4. If the money GDP is S600 billion and, on the average, ench dollar is spent three times per year, then the amount of money demanded for transactions purposes: will be $1800 billion. buying government securities will be 5600 billion...
Did I do number 17 right 300-300×20%=240 ) ) remain the same. but the direction of...
Did I do number 17 right
300-300×20%=240
) ) remain the same. but the direction of the change cannot be determined without information on the reserve ratio. Dir decrease Br The Bank of Canada cannot shift government funds from itself to the chartered banks reserve ratio is 20 percent and banks have no excess reserves. Katie deposits $300 in her bank What is the maximum that Katie's bank can now loan? A) $1,200 C) 5480 D) S60 18) Other things...
Question 16 (1 point) Saved Credit cards are considered to be "money substitutes" instead of money because OA) they are not acceptable to pay for purchases. OB) they cannot serve as a temporary medium of exchange. O C) the only function of money they can perform is to serve as a store of value. O D money must eventually be used to pay for the transaction. E) credit card accounts are not chequable. Question 17 (1 point) Until recently, and...
Question 27 (1 point) Saved The main distinction between M2 and M2+ is that M2+ also includes O A) deposits at trust companies, caisse populaires and foreign-currency accounts O B) coins in circulation. OC) money market mutual funds held by the Bank of Canada. OD) paper currency. OE) deposits at financial institutions other than the chartered banks. Question 28 (1 point) Saved The functions of the Bank of Canada include O A) acting as the lender of last resort for...
Question 44 (1 point) Assume that, in the process of an open market operation, the Bank of Canada buys $100 billion worth of government bonds of chartered banks. Assuming the desired reserve ratio is 20%, in this process, a) Bank of Canada's assets increase by $100b. b) Bank of Canada's assets decrease by $100b. c) chartered banks' deposits at the Bank of Canada decrease by $100b. d) chartered banks' deposits at the Bank of Canada increase by $100b. e) chartered...
Question 1 (1 point)
The amount of reserves that a commercial bank is required to
hold is equal to:
Question 1 options:
the amount of its checkable deposits.
the sum of its checkable deposits and time deposits.
its checkable deposits multiplied by the reserve
requirement.
its checkable deposits divided by its total assets.
Save
Question 2 (1 point)
Answer the question on the basis of the following information
for the Moolah Bank.
Refer to the information and assume that Moolah...
Question 48 (1 point) Use the following graph to answer the next question. AS, AS. (H Price Level E AD. 0 AD A B C Real Domestic Output Other things equal, a shift of the aggregate supply curve from ASo to AS1 might be caused by a(n) Other things equal, a shift of the aggregate supply curve from ASo to AS1 might be caused by an) OA) decrease in nominal wages B) increase in productivity C) decrease in aggregate demand...
answer all
QUESTION 14 The discount rate is the interest rate that O the Fed charges on loans made to the government. O member banks charge on loans made to the Fed. O the government charges on loans made to the Fed. the Fed charges on loans made to member banks. QUESTION 15 The slope of the aggregate demand curve indicates that, as the price level increases, O the aggregate demand curve shifts rightward. O the real GDP demanded decreases....
Question Completion Status: QUESTION 9 The slope of the aggregate demand curve indicates that, as the price level increases, O the aggregate demand curve shifts rightward. the real GDP demanded decreases. the real GDP demanded increases. the aggregate demand curve shifts leftward. QUESTION 10 Checking deposits are commodity money. liabilities for banks. not included in M1 or M2. primarily used as a store of value. QUESTION 11 Suppose the required reserve ratio is 25%. Assuming that banks hold no excess...
Benji charges the tooth fairy 10% interest every night that they are late in exchanging money for his lost tooth. If the price of a lost tooth is initially $1, approximately how many nights would it take for the price of the tooth to rise to $128? 7 nights O 13 nights 14 nights 49 nights It cannot be determined from the information above. Question 4 3 pts A description of the fiscal multiplier effect is when: the government increases...
1. The economy is experiencing high unemployment and a low rate of economic growth and the Bank of Canada decides to pursue an expansionary monetary policy. Which action by the Bank of Canada would be most consistent with this policy? 4. If the money GDP is S600 billion and, on the average, ench dollar is spent three times per year, then the amount of money demanded for transactions purposes: will be $1800 billion. buying government securities will be 5600 billion...
Did I do number 17 right
300-300×20%=240
) ) remain the same. but the direction of the change cannot be determined without information on the reserve ratio. Dir decrease Br The Bank of Canada cannot shift government funds from itself to the chartered banks reserve ratio is 20 percent and banks have no excess reserves. Katie deposits $300 in her bank What is the maximum that Katie's bank can now loan? A) $1,200 C) 5480 D) S60 18) Other things...
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